Negotiating Strategies in a Buyer's and
Seller's Market
Right At Home
Daily: Finding It: Contractor
Negotiating Strategies in a Buyer's and Seller's
Market
By Margaret Crane for Right at Home Daily
Congratulations. After a good deal of hard work
and research, you've finally found a home you love. Based on your research,
you've constructed an offer that is less than the list price.
In addition to the price, the offer will contain
information such as the closing date, those items you'd like the owner to leave
(e.g., window treatments, built-ins, light fixtures, and appliances), and your
inspection, attorney and financing contingencies. You'll also attach a good
faith deposit 
-
so the seller knows you're a serious buyer -- and an expiration date for the
contract.
Now the waiting begins. The sellers may accept
the offer, reject it or make a counteroffer, which is their response to your
offer. They may want a higher price or may not be willing to fix any defective
items. Your agent may convey the counteroffer verbally or in writing.
Now that you've received the counteroffer, you
must evaluate it. Do you want to pay a higher price? How much does your buyer's
agent think the property is worth? Will you accept the house in "as is"
condition? After careful deliberation, you'll submit a new counteroffer through
your agent.
Remember that while your agent is the messenger,
you need to make all decisions. Be careful what you tell your agent; you don't
want her or him repeating anything that shouldn't be disclosed to the seller's
agent during the negotiating process.
TAKE IT AND RUN
Once you make an offer on a home that's less
than the asking price, the seller has the option to reject it, accept it or
make a counteroffer. If you get a counteroffer, consider these possibilities:
1. As the buyer, you may accept the counteroffer,
reject it or renegotiate. If you want to keep the contract alive, you can accept
the price they suggested, or move up from your initial price, or change the
inclusions, date of closing, or other items. For example, if the sellers want
to take their refrigerator, you might stay firm with your lower price but give
in on the appliance.
2. Decide the maximum amount you're willing to pay
and don't budge from that price. It's rarely worth overpaying for a home.
3. Be prepared that the seller may accept your counteroffer,
reject it, or make a counteroffer of his own.
